we all are aware of these three terms data , information and knowledge because these terms are very commonly used in our daily life .sometimes even we mix these terms in order to explain something like if someone is explaining and information is the best word to use in that situation but one use the word knowledge. There is lots of debates are ongoing on these terms and we can find these in literature easily some says data comes first and after that data converts into information and that information converts into knowledge and some says these terms are related to each other .
Stanemark D 2002 mention in his article “information vs knowledge” that these writers tried to define these three terms related to each other the figure shows the relation between these terms. Ackoff(1997), Bellinger et al(1997),Davenport and prusak(1998) and Choo et al(2000)
Figure1

Source [http://www.viktoria.se/~dixi/km/chap3.htm]
He called this figure as oversimplified image and he said that relating these terms is not an appropriate way. According to the criticism he made in his article he wrote, if we define these in terms of each other the relationship between these become linear and this image shows that the distance between data and information is same as the distance between information and knowledge and also image shows symmetry also tells us that data converts into information and then information converts into knowledge and one can not go other way round this way of thinking also adopted by several other writers and define information in terms of data and knowledge in terms of information Table 1 mention all these definition with there writers names and how they define these terms .
Table1

Source [http://www.viktoria.se/~dixi/km/chap3.htm]
He also mention Another commentator [ Tuomi 1999] according to Tuomi knowledge is already exist before information can be formulated and before data can be measured to form information. According to Tuomi there is no raw data he gave the totally inverse process as mentioned up that data comes first that converts into information and that information converts into knowledge but Stanemark D was not agree with both of these concepts he mentioned in his article that its not an one way or an other way according to his understanding he said, “data and information are only two opposite ends on a continuum. We can concentrate our attention to certain aspects of knowledge, making it focal. The focal knowledge can, sometimes and partially, be articulated and furnished with words. I refer to this as information. If the information becomes too de-contextualised, i.e. too distant from the knowledge required to interpret it, I shall call it data. Since a piece of text itself is not sufficient to exhaustively describe the knowledge to which it refers, the reader's tacit knowledge must be compatible with that of the writer in order to interpret and fully comprehend the implications of the information. Hence, what one conceives as information another sees as data.”. He also mention another concept which is knowledge is require for both data and information and at the same time data and information constructing new blocks of knowledge by [Nonaka and Takeuchi, 1995]
According to my understanding these terms data, information and knowledge, knowledge plays important role in every stage or I can say that knowledge is there when someone talk about data as well as information the question is how.
Reference
Assessed on march 1, 2008 By Dick Stenmark Dept. of applied Information Technology IT university of Gothenburg
http://www.viktoria.se/~dixi/km/chap3.htm